Promoter raises $1 million for homesharing platform start-up
LOS ANGELES: A healthcare investor has raised funds to underpin the launch of a homesharing platform.
Sparrow, a technology-driven social enterprise, has received $1 million in funding for its homesharing platform and community that aims to address housing affordability and loneliness in Canada.
The Government of Canada has provided $500,000 in funding as part of the National Housing Strategy Innovation programs. Accenture also provided $500,000 in funding and both organizations will continue to support the Sparrow team with technical and industry expertise through its launch.
The Sparrow platform connects Canadians with spare bedrooms to those looking for accommodation of minimum two-months, enabling hosts to generate passive income and build social connections by renting out unused space in their homes, while renters benefit from access to housing, typically below market rates.
A CCEA study estimated there are 5 million empty bedrooms in Ontario. Based on census data, we estimate that there are over 12 million empty bedrooms across Canada.
“The pandemic has deepened two parallel Canadian crises – housing affordability and loneliness,” says Oren Singer, CEO and co-founder at Sparrow. “We have an opportunity to normalize homesharing by making it easier, safer, and more enjoyable to share unused housing space. With Sparrow, we are enabling pathways for Canadians to find budget-friendly accommodation, unlock existing housing supply, and live better together,” said Singer.
The Sparrow collaboration is a result of the National Housing Strategy’s work to foster new, innovative ideas, and accelerate or scale solutions that address our country’s most pressing housing issues, and Accenture’s focus on enabling young companies to realize their full potential. The investment has funded a core team of four employees, including founders Oren Singer and Gavin Servai, as well as the platform’s development and pilot launch. The team plans on expanding to all neighborhoods in need across Canada.
“The National Housing Strategy is about finding new and innovative ways to provide Canadians with more affordable rental options. In addition to low rent housing opportunities, social benefits associated with home sharing include reduced social isolation and providing seniors with more choices as they age comfortably, this is another great example of how we are supporting innovative affordable housing solutions to better meet Canadians’ needs,” said The Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion.
Anant Gadia, a managing director in Accenture’s Public Service practice in Canada, added: “Sparrow is using innovation to re-think how we tackle society’s chronic issues and make tangible positive impact. At Accenture, we have a passion for creating new solutions that benefit society and we share Sparrow’s vision in tackling major social and economic challenges through novel ideas and technology.”
Sparrow places safety at the center of its services, embedding identity verification, background checks, homeshare agreements, and screening interviews into its matching process. The platform also includes compatibility matching, to enable better connections based on habits, lifestyle, and living preferences. Canadian populations forecasted to benefit from the platform include seniors, retirees, post-secondary students, empty nesters, newcomers to Canada, and first-time home buyers.
“We’d like to help Canadians reduce their housing costs, enhance their quality of life, and build meaningful relationships through putting those 12 million empty bedrooms to good use,” added Singer.